The Anti-Money Laundering Regulations of the Cayman Islands have been updated, with the headline amendment being the requirement for any firm or fund carrying out relevant financial business in the Cayman Islands to designate a Natural Person as the Anti-Money Laundering Compliance Officer, Money Laundering Reporting Officer and Deputy Money Laundering Reporting Officer.
The AMLCO ensures that the firm or fund adequately addresses money laundering and terrorist financing risks. In performing that role, the appointed person would be responsible for ensuring that systems and controls remain suitable in line with changing requirements, ensuring that AML programs are audited regularly, maintaining vital records to assist in the fight against financial crime, reporting to the Board of the firm or fund on AML issues and assisting relevant authorities with any investigations.
The MLRO and DMLRO are responsible for evaluating reports of any ‘suspicious activity’ within a regulated firm or a fund and taking the appropriate steps to report that activity on to Cayman’s Financial Reporting Authority.
Each firm or fund must appoint an AMLCO, MLRO and DMLRO by 30 September 2018. With this deadline fast approaching, it is vital that firms or funds who have not appointed someone to these key positions consider seeking external assistance. The person appointed to these roles has to be suitably qualified, skilled and have sufficient time and resources to perform the role.
Some regulated firms and funds will inevitably struggle to find existing employees with the requisite skills and experience. Many will find that the size, nature and complexity of their business does not justify a full-time employee in these roles. KSG Attorneys at Law has created its own AML expertise centre, KSG Risk Solutions, to help those firms or funds in meeting their obligations.
Francis Donoghue is a Consultant at KSG Risk Solutions. With over 25 years experience in law and compliance, including 9 years as an AML professional in the Cayman Islands, Francis is ideally placed to assist any firms or funds which might need help in filling these new roles.
Contact Francis to discuss how he can assist.